18 August 2012

GMS report on shipbreaking industry for WEEK 32 of 2012:

With one market set for an extended period on the sidelines, another emerges with perfect timing to take its place and absorb some of the tonnage that continues to pour daily onto the market.

Bangladesh has taken its fair share of vessels this year so perhaps could be forgiven for needing a period of cool down to absorb and digest the tonnage already acquired from the most recent binge on units.

On the other side, it was India that finally roused from a stupor that has afflicted the local ship recycling industry for the last few months thanks to problems dating back to the fourth quarter of last year and the plummeting value of the Indian Rupee against the US dollar.

Admittedly, as observed last week, there has been a considerable amount of cash buyer speculation arise recently at unjustifiable levels to market prices, and it remains to be seen whether those various gambles wall pay off for the cash buyers in question.

It is however encouraging to see the Indian market gear back into action after a relatively prolonged period on the sidelines, with end buyers once again enquiring on vessels and keen compete. This of course has helped to pull Gadani buyers up to competitive levels as well. Very rarely a leader of the market with their pricing, India's improvement has also done the Pakistani market a world of good.

China unfortunately remains marooned some USD 100/LT LT behind their Indian sub continent competitors after another woeful week of non performance. Needless to say, no market sales were reported there and it seems very likely that most of the market tonnage even if geographically positioned in the East will be heading to Indian sub continent shores in the immediate future, unless they get their act together.

For week 32 of 2012, GMS demo rankings for the week are as below:

Sentiment Market
USD 400/lt ldt
USD 430/lt ldt
USD 395/lt ldt
USD 425/lt ldt
USD 390/lt ldt
USD 330/lt ldt

Source: Steel Guru (sourced from GMS Weekly). 18 August 2012

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